PIMCO Plans New Alternatives Push

Aug 29 2013 | 12:35pm ET

The world's biggest bond-fund manager is set to take advantage of new hedge-fund advertising rules.

Pacific Investment Management Co. plans a major expansion of its alternative investments business and is already preparing a new offering that will be available to retail investors with a $1,000 minimum investment, The Wall Street Journal reports.

Douglas Hodge, PIMCO's chief operating officer, told the Journal that alternatives are "a very important area for us," one made even more attractive by the lifting of an 80-year-old ban on hedge-fund advertising that takes effect next month.

"The world is going to change he because of the JOBS Act," he said.

Earlier this month, PIMCO filed a preliminary prospectus for a new liquid alternative fund that will invest in interest-rate, currency, mortgage, credit and commodity derivatives. The Pimco Trends Managed Futures Strategy Fund will have a retail share class with a $1,000 minimum, akin to a mutual fund.

Hodge said that the decision to expand its alternatives business—PIMCO already runs a $29 billion alternative bond fund—is a result of client demand.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...